What is BIR52 (Profits Tax Return)?
BIR52 is the annual Profits Tax Return form filed by corporations with the Inland Revenue Department. The IRD issues BIR52s in bulk each April, and the deadline to file depends on the company's accounting year-end: April year-ends by 15 August, November year-ends by 15 May, all others within 1 month of issue.
Current Rate (1 April to 31 March)
N/A (filing form, not a rate)
Example
A company with a 31 December year-end receives its BIR52 in April. It has 1 month from the issue date to file. The audited accounts and tax computation must accompany the return. A tax representative can apply for a block extension.
How BIR52 (Profits Tax Return) works in Hong Kong
**What is a BIR52?**
BIR52 is the standard Profits Tax Return form for corporations registered in Hong Kong. It is issued by the Inland Revenue Department after the close of each tax year (1 April to 31 March). For newly incorporated companies, the IRD typically issues the first BIR52 18 months after incorporation.
**Filing deadlines by year-end**
The IRD operates a block extension system through tax representative firms: - Year-end 1 April to 30 November (excluding April and November specifically): 1 month from date of issue (typically May/June) - April year-ends: extended to 15 August - November year-ends: extended to 15 May - December year-ends: extended to 15 August - Year-ends in January to March: may have additional extension to 31 October or 31 January following engagement of a tax representative
These extensions apply when the company is represented by a registered tax firm enrolled in the IRD's block extension scheme.
**What must accompany the BIR52**
- Audited financial statements (all HK companies must audit, unlike UK/AU small company exemptions) - Tax computation showing adjustments from accounting profit to assessable profit - Depreciation schedule (initial allowances claimed, annual allowances) - Schedule of interest income and expenses - Details of any related-party transactions - Offshore claim letter and supporting documentation (if claiming offshore profits exemption)
**Two-tier computation**
The BIR52 computation must correctly apply the two-tier rates: 1. Identify the connected persons group. Only one entity may use the lower rate. 2. Elect (or not elect) for the lower 8.25% rate on the first HKD 2M. 3. Compute assessable profits at the applicable rates.
**Provisional tax**
When an assessment issues, the IRD also raises a provisional assessment for the following year based on the current year's assessable profits. 75% of the provisional tax is payable with the current year balance. This means the company pays two years' tax concurrently in the first year of profit: the balance for the year just assessed and the provisional amount for the current year.
**Penalty for late filing**
Late filing: additional tax of up to three times the amount of tax assessed, plus a fixed penalty. The IRD issues estimated assessments if returns are not received, which are typically set high to encourage compliance.
Related terms
Hong Kong Profits Tax is levied on assessable profits arising in or derived from Hong Kong. Since 2018 a two-tier regime applies: 8.25% on the first HKD 2 million of assessable profits, then 16.5% above that. Only one entity per related group can benefit from the lower 8.25% rate.
Hong Kong taxes only profits arising in or derived from Hong Kong (territorial basis). Offshore profits are exempt from Profits Tax. The source of profits is determined by where the profit-generating activities (negotiation and conclusion of contracts) were performed. Post-2023, FSIE rules apply to passive income of large multinationals.
The Hong Kong tax year (year of assessment) runs from 1 April to 31 March. However, companies may choose any date as their accounting year-end. The Profits Tax is assessed based on the company's accounting period ending within the relevant year of assessment.
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